Chapter 1: Introduction

Question 1

Information systems =

Answer 1

• Information technologies: tech that supports systems - Ex: computer networks, internet -> public, (intranet ->private), databases
• Help organizations be more competitive and improve efficiency (resource utilization) and effectiveness (appropriateness)

Question 2

Computer Literacy

Answer 2

• Using productivity software
• Having basic knowledge of hardware, software, the internet, tools, and technology
• Ex: Word, excel, database management systems, presentation software
• Is a skill in using productivity software, such as word processors spreadsheets, database management systems, and presentation software

Question 3

Information Literacy

Answer 3

• Understanding information to generate business intelligence (BI)
• BI: More than just information. Provides historical, current, predictions, competitive edge

Question 4

Transaction Processing System (TPS)

Answer 4

• Focuses on data collection and processing
• Cost reduction
• Involve operations that are repetitive
• Ex: Record keeping, inventory control, automated pay roll

Question 5

Management Information Systems (MIS)

Answer 5

• Produces timely, integrated, relevant, accurate, useful information for making decisions.
• Uses data to make decisions
• Includes:
  
  • > Hardware (computer)
  • > Software (program)
  • > Processes
  • > Human elements

Question 6

4 Major components of an information system

Answer 6

1. Data
2. Database
3. Process
4. Information

Question 7

Data

Answer 7

• Raw facts
• Input of information system
• Ex: customer numbers and their names
• Eventually becomes information
• External (comes from customers, competitors, supplies, labor statistics, govt.) or Internal (sales records, personal records)
• Aggregated (totaled) or disaggregated (itemized lists)

Question 8

Information

Answer 8

• Processed data that is useful in decision making
• Knowledge derived from data
• Facts in context
• Output/goal of information systems
• Used to make decisions
• Anything you can compare
• Must have timeliness, integration with other data and information, consistency and accuracy, relevance

Question 9

Database

Answer 9

• A permanent collection of information
• Collection of all relevant data organized in a series of integrated files
• A central repository of information, stored more-or-less permanently on a computer system, that is of interest to some enterprise.

Question 10

Database Management System (DBMS)

Answer 10

• The software used to filter database
• A generalized software tool for manipulating large databases; it provides minimally the capabilities of interrogation and maintenance of the stored data, via a set of languages or user interfaces.

Question 11

Process

Answer 11

• Generate the most useful type of information for decision making
  -Ex: Transaction-processing reports
  Models for decision analysis

Question 12

4 M’s of resources

Answer 12

1. Man
2. Money
3. Machine
4. Materials

Question 13

Personnel information system (PIS) or human resource information system (HRIS)

Answer 13

Designed to provide information that helps decision makers in personnel carry out tasks effectively

Question 14

Logistics information system (LIS)

Answer 14

Designed to reduce the cost of transporting materials while maintaining safe and reliable delivery, optimization

Question 15

Manufacturing information system (MFIS)

Answer 15

Used to manage manufacturing resources so that companies can:

 - > Reduce manufacturing costs
 - > Increase product quality
 - > Improve inventory decisions

Question 16

Financial information system (FIS)

Answer 16

Used to provide information to financial executives in a timely manner

Question 17

Marketing information system (MKIS)

Answer 17

• Used to improve marketing decisions

- Provides timely, accurate, and integrated information about the marketing mix (Price, promotion, place, and product)

Question 18

Porter’s 5 Forces Model

Answer 18

1. Buyer power: High when buyers have many choices, low when they have few choices, want to limit choices so buyers don’t switch
2. Supplier power: High when customer options low, can charge more, demand
3. Threat of substitute products or services: Up when up alternatives
4. Threat of new entrants: Down when duplicating good is hard
5. Rivalry among existing competitors: Up when up competitors
   - Used to analyze a firm’s position in the marketplace and how it can use information systems to be more competitive

Question 19

3 strategies to gain competitive advantage in marketplace

Answer 19

1. Overall cost leadership
2. Differentiation: Making products and services different from competitors
   3: Focus strategies: Focusing on specific market segments to achieve a cost or differentiation advantage

Question 20

System software

Answer 20

Pre-installed
Generic
System = Multiple
Ex: System software -> has operating system (Windows) -> has apps (Excel)

Question 21

Operating System

Answer 21

• Set of programs for controlling and managing computer hard and software
• Provides interface between computer and user
• Example of a system software
• Ex: Windows, Mac
• Consists of Control programs (used to manage hardware) and supervisors programs (kernel) used to control all other programs in the operating system (software)

Question 22

Application Software

Answer 22

• Performs specialized tasks
• Some apps are pre-installed others, the user installs
• Ex: Microsoft Office (Excel, word, powerpoint, access)
• Word processors, spreadsheets, database management systems, and productivity software

Question 23

Knowledge worker

Answer 23

• A person whose job involves handling and using information

- Information processor that uses software (computer programs) and knowledge

Question 24

Efficiency

Answer 24

Concerned with resource utilization

Output/Input

Question 25

Effectiveness

Answer 25

Concerned with the appropriateness of the transformation process

Question 26

System

Answer 26

- A set of interrelated parts that work together for some purpose. - Transforms inputs into outputs Input -> Process -> Output -> Feedback (Information about system performance) - All systems have a goal

Question 27

Decision Support System (DSS)

Answer 27

Model that takes input and generates information, makes predictions used to make decisions

Question 28

Garbage in Garbage out (GIGO)

Answer 28

Output quality depends on input quality. | Inaccurate data will lead to inaccurate information

Question 29

Computer

Answer 29

- An electronic device which can perform computations including arithmetic and logical operations (example: User puts in username and password, does it match up/compares uses if then statement: if condition is true then allow access) - Can store and execute its own instructions - Accepts data (input) for processing and outputs a result - Has internal storage, can execute a stored program (program = a set of instructions for a particular computer application)

Question 30

The significance about a computer's ability to store instructions is that it

Answer 30

- Allows you to use your computer for one task and then switch to a different one (stored program) - Uses one computer for many programs, adds flexibility to change - Provides reliability (dependable)

Question 31

Program (source code)

Answer 31

= Instructions - A set of instructions for a particular computer application = source code -> translated into object code (consisting o binary 1s and 0s

Question 32

Models

Answer 32

Variables go in (input, data) -> predict what will happen Ex: Decision Support System (DSS)

Question 33

Optimization

Answer 33

The best situation based on circumstances

Question 34

Transaction

Answer 34

Event that you are capturing

Question 35

Point of sale (POS)

Answer 35

- System that scans what is being sold and collects data in real time - Moment that transaction is completed - Ex: Cash register -> code -> product -> price -> cash/credit card -> approved

Question 36

Radio frequency identification tags (RFID)

Answer 36

Ex: Name tag with id in badge, tracker, count amount of people

Question 37

Yield Management

Answer 37

Adjusting price to match supply and demand and competition

Question 38

What is software?

Answer 38

The set of instructions that the hardware executes to carry out specific tasks

Question 39

External Data comes from:

Answer 39

Customers, competitors, suppliers, labor statistics, and the government

Question 40

Internal Data comes from:

Answer 40

Sales records and personal records